York Water Company Reports Q2 2025 Financial Results with Net Income Increase

The York Water Company reported its financial results for the second quarter and first half of 2025, showing a slight increase in net income for the quarter but a decrease for the six-month period. For the three months ended June 30, 2025, net income was $5,052,000, a 1.2% increase from $4,993,000 in the same period of 2024. However, for the six months ended June 30, 2025, net income decreased by 6.8% to $8,690,000 from $9,320,000 in the prior year. The company attributed the quarterly increase to higher operating revenues and lower income taxes, while the decline in the six-month results was primarily due to increased operating expenses and interest on debt.

Operating revenues for the second quarter of 2025 rose to $19,199,000, a 2.4% increase from $18,750,000 in the same quarter of 2024. This growth was driven by an increase in the customer base and additional revenues from the distribution system improvement charge (DSIC), which contributed $497,000. The average number of water customers served increased by 1,155 to 73,459, while wastewater customers grew by 518 to 7,017, largely due to acquisitions. In contrast, total per capita consumption decreased by approximately 2.8% compared to the previous year.

Operating expenses for the second quarter increased by 3.6% to $12,113,000, up from $11,688,000 in the same quarter of 2024. The rise in expenses was attributed to higher costs in several areas, including insurance, depreciation, wages, and water treatment. Interest expenses also rose significantly, increasing by 15.5% to $2,521,000, primarily due to higher interest rates and increased debt levels. The company’s effective tax rate for the quarter was negative 7.8%, down from 9.4% in the prior year, reflecting higher deductions under IRS regulations.

Looking ahead, York Water Company is pursuing growth through acquisitions and infrastructure improvements. The company has signed agreements to acquire wastewater and water assets from several communities, which are expected to add approximately 545 customers upon completion. Capital expenditures for the first half of 2025 totaled $22,182,000, with plans for additional investments of approximately $23,800,000 for the remainder of the year. The company anticipates modest revenue growth driven by the DSIC, increased customer demand during the summer months, and ongoing acquisitions. However, it also acknowledges potential impacts from regulatory actions, weather patterns, and economic conditions on its financial performance.